Capital Research Global Investors Boosts Stock Holdings in Cognizant Technology Solutions Corporation $CTSH

Key Points

• Capital Research Global Investors increased its stake in Cognizant by 3.0% to 6,216,912 shares (about 1.29% of the company) worth ~$416.97M, and several other large institutions also added shares, leaving institutional ownership at 92.44%.
• Cognizant beat quarterly estimates with $1.35 EPS (vs. $1.32 est.) and $5.33B revenue (vs. $5.31B est.), issued FY2026 EPS guidance of 5.560–5.700, and raised its quarterly dividend to $0.33 (a 2.1% yield).
• The analyst mix is mixed — 10 Buys and 12 Holds produce a consensus rating of "Hold" with a $90.17 target, though several firms have raised targets and upgraded ratings (e.g., Guggenheim and Deutsche Bank).

Capital Research Global Investors raised its holdings in Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 3.0% in the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 6,216,912 shares of the information technology service provider's stock after acquiring an additional 180,258 shares during the quarter. Capital Research Global Investors owned 1.29% of Cognizant Technology Solutions worth $416,968,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also modified their holdings of CTSH. Vanguard Group Inc. grew its holdings in Cognizant Technology Solutions by 0.8% during the 3rd quarter. Vanguard Group Inc. now owns 60,348,442 shares of the information technology service provider's stock valued at $4,047,570,000 after buying an additional 493,912 shares during the last quarter. State Street Corp raised its stake in Cognizant Technology Solutions by 0.6% during the second quarter. State Street Corp now owns 25,381,572 shares of the information technology service provider's stock worth $1,980,524,000 after purchasing an additional 157,427 shares during the period. Pzena Investment Management LLC boosted its holdings in Cognizant Technology Solutions by 1.5% in the third quarter. Pzena Investment Management LLC now owns 17,710,868 shares of the information technology service provider's stock valued at $1,187,868,000 after acquiring an additional 260,177 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Cognizant Technology Solutions by 1.5% during the 2nd quarter. Geode Capital Management LLC now owns 14,019,891 shares of the information technology service provider's stock worth $1,091,391,000 after purchasing an additional 206,532 shares during the period. Finally, First Trust Advisors LP grew its stake in Cognizant Technology Solutions by 7.6% during the third quarter. First Trust Advisors LP now owns 9,085,998 shares of the information technology service provider's stock worth $609,398,000 after buying an additional 639,801 shares during the period. Institutional investors and hedge funds own 92.44% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on CTSH shares. Susquehanna restated a "positive" rating and issued a $98.00 price target on shares of Cognizant Technology Solutions in a report on Friday, January 23rd. Citigroup restated a "neutral" rating and issued a $86.00 target price (up from $75.00) on shares of Cognizant Technology Solutions in a research note on Thursday, January 22nd. Guggenheim reaffirmed a "buy" rating and set a $100.00 price target (up from $95.00) on shares of Cognizant Technology Solutions in a report on Wednesday, January 28th. William Blair upgraded shares of Cognizant Technology Solutions from a "market perform" rating to an "outperform" rating in a report on Friday, November 21st. Finally, Deutsche Bank Aktiengesellschaft raised shares of Cognizant Technology Solutions from a "hold" rating to a "buy" rating and set a $100.00 price objective for the company in a research report on Monday, January 26th. Ten research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $90.17.

Insider Buying and Selling at Cognizant Technology Solutions

In other news, insider Surya Gummadi sold 1,728 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $83.06, for a total transaction of $143,527.68. Following the transaction, the insider owned 25,641 shares in the company, valued at $2,129,741.46. This represents a 6.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Michael Patsalos-Fox sold 2,000 shares of Cognizant Technology Solutions stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $84.23, for a total transaction of $168,460.00. Following the completion of the transaction, the director directly owned 29,729 shares in the company, valued at approximately $2,504,073.67. This represents a 6.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 23,809 shares of company stock valued at $2,010,778. 0.32% of the stock is currently owned by corporate insiders.

Cognizant Technology Solutions Stock Performance

CTSH stock opened at $62.98 on Wednesday. The stock's 50 day simple moving average is $75.34 and its 200 day simple moving average is $74.10. The company has a current ratio of 2.14, a quick ratio of 2.14 and a debt-to-equity ratio of 0.04. Cognizant Technology Solutions Corporation has a 12-month low of $60.03 and a 12-month high of $87.03. The firm has a market cap of $30.12 billion, a P/E ratio of 13.84, a P/E/G ratio of 1.40 and a beta of 0.99.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its quarterly earnings data on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share for the quarter, topping analysts' consensus estimates of $1.32 by $0.03. Cognizant Technology Solutions had a net margin of 10.56% and a return on equity of 17.17%. The business had revenue of $5.33 billion for the quarter, compared to analysts' expectations of $5.31 billion. During the same quarter last year, the company earned $1.21 EPS. The company's revenue for the quarter was up 4.9% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. As a group, equities research analysts predict that Cognizant Technology Solutions Corporation will post 4.98 EPS for the current year.

Cognizant Technology Solutions Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, February 26th. Stockholders of record on Wednesday, February 18th were given a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.1%. This is a boost from Cognizant Technology Solutions's previous quarterly dividend of $0.31. The ex-dividend date of this dividend was Wednesday, February 18th. Cognizant Technology Solutions's payout ratio is presently 29.01%.

Cognizant Technology Solutions Profile

Cognizant Technology Solutions NASDAQ: CTSH is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.

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